Samsung was saved from a potential global embarrassment recently when it's upcoming Samsung Pay system escaped the attention of prowling hackers without a scratch. Well, that's what Samsung says.
The issue came to head when LoopPay, a subsidiary of Samsung which helps transmit stored credit card information to magnetic card readers to ensure smooth payments, was subjected to constant hacking for four straight months before realising it was being hacked.
The hackers in question are of Chinese origin and are known by names like Codoso Group or Sunshock Group. As per Samsung, the hackers directed their attention to LoopPay's servers, e-mail and printing devices but left Samsung Pay alone. Now that's funny.
As per New York Times, LoopPay employees claim that "the hack appeared to be aimed at stealing this technology."
The hack was first discovered in August and efforts are currently on to sanitize LoopPay's servers and systems. It is expected that there would be no further cyber-attacks on the firm's servers in the near future.
The acquisition of LoopPay back in February was strategic, time saving as well as cost-saving. LoopPay uses Magnetic Secure Transmission (MST) system which generates a magnetic field that links up with that of the card readers to facilitate the flow of information. LoopPay claims that the MST system works in around 90 per cent of American sale terminals.
This offers much better integration with existing magnetic strips in most credit card terminals unlike Apple Pay which requires merchants to upgrade to new terminals.
Even though Samsung claims otherwise, we really aren't very impressed with the concept that hackers got no information about Samsung Pay from LoopPay's internal e-mails and servers. Considering they didn't, Samsung Pay should have a smooth sailing in the United States where it was launched last week. However, the company hasn't confirmed the launch date of its payment system in the UK yet.